Beach Bento

Oddly enough, soaking up the sun works up quite the appetite, but your sun lounger beckons you to remain firmly reclined. Our Beach Bento keeps hunger pangs at bay and jazzes up your midday meal with a pre-curated or build-your-own bento box. Our menu, best enjoyed al fresco, is a spread of fresh seafood, light salads and crowd-pleasers. Casual meets refined dining with our 'Fruits of the Sea' Bento packed with the Indian Ocean's bounty, or you can always get your fix of sushi. The concept is simple: tick your favorite items, indicate when you want them served to you, and leave the rest to us. It's your Bento, served your way.

Paddle Tennis

LUX* has brought the quintessential L.A. sport to its shores. Paddle Tennis (or Padel in French) takes after tennis in scoring and style, but with a tiny court and lower net. With its emphasis on quick, explosive mouvements, agility, strength, and endurance, the sport will get you into winning shape. The easy-to-learn game, which begins by deflating a tennis ball, is played with a wooden paddle dotted with holes. The family favorite (though it has its fierce competitors too) is a matchless experience of health and a healthy dose of fun.

The G&T 100 Club

The world is smitten with Gin, and LUX* is no exception. G&Ts, previously banished to the shelves of older generations, are back with a bang, and this time with a splash of botanicals. We are introducing a meticulously-curated selection of 100 Gins from across the globe, paired with a myriad of tonics and bitters, each one lending its unique nuance with endless combinations of flavours like cucumber, herbs, flowers and saffron. Whether taken as an aperitif like in the UK, or a postprandial copa as the Spanish enjoy it, our carefully-crafted cocktails are likely to convert you into a gin aficionado.

Veggie Heaven

The health-food phenomenon is here to stay to the benefit of our waistlines, planet and palates. LUX* has curated a greens-packed menu and it is heavenly. The colourful, locally-sourced ingredients are transformed by our chefs into envy-inducing dishes that perfectly complement the healthy lifestyle we encourage. At LUX*, dining is at once a culinary voyage and a coming home. These exquisite yet simple courses are a nice balance to a lavish stay and redefine how we think about cooking. From brunch to late-night room service, vegetarians and vegans will not longer be the picky eaters of the bunch.

LUX* Organic Escapes, Chengdu - China

Travel to a place that hits all the major wellness touchpoints...

LUX* Organic Escapes, opening 2018, hits a sweet spot - ancient Chinese medicine, detoxes, mindfulness, farm-to-fork dining.

The 40-room boutique retreat wants to offer health-seekers a sanctuary devoted to all things wellness.

Nestled on an organic farm in the plains of Chengdu, the capital of the Sichuan province - famed for its fiery hot cookery - the haven blends contemporary design and traditional Chinese craftsmanship.

Gear up for transformation as you check in to LUX* Organic Escapes.

A central aspect of the retreat is the LUX* Me Wellness Concept, which integrates hallmarks of modern wellbeing with ancient customs of cultivating inner-peace.

Uncover the ancient cultures of China while sipping a hot drink prepared by a Cafe LUX* barista.

LUX* LUXE LAKES, CHENGDU - CHINA

Where contemporary architecture and art embraces gorgeous natural surroundings...

LUX* Luxe Lakes is an ode to architecture, design and mastery. The geometric contemporary resort, designed by the illustrious French architect, Jean Nouvel, is part of Luxe Lakes, an urban eco-city set on an astonishing man-made lake in Chengdu, the capital of the Sichuan province.

The tiered edifice has floor-to-ceiling glass panes that allow light to stream into the lobby with its enormous volumes. Brightly- patterned ceilings create striking bursts of colour, a pleasant contrast to the terracotta and verdant spring colours of the surrounding nature (the Sichuan province is home to the giant panda after all). If the resort is seemingly a radical break from tradition, the reality is that LUX* Luxe Lakes is embedded in its environment. The lake, a sort of sacred body of water, plays an essential role.

The reflections of the iconic edifice and the forests on the surface of the water are soothing. Here the magic of LUX* operates in an architectural beauty, the inside of which is filled with artwork -evidence of our appreciation of all things beautiful.

LUX* North Male Atoll Maldives

Elope to Olhahali, where upscale comfort meets the beauty of nature...

Life in the Maldives is delineated by dazzling white sandbanks, long hours basking in the sun, and the possibility of drifting between your sunbed and the aquamarine Indian Ocean in a few steps. Few nations can claim to be 99 percent water. The remaining 1 percent? 1,200 islets, strung like pearls on a necklace, that form atolls (the tippy-top ring of extinguished, submerged volcanoes).

LUX* North Male, opening 2018, has replaced the ubiquitous thatched-roof water villas by contemporary white-washed penthouses tinged with bright pink and set with swimming pools, jacuzzis with a twilight view and immense pale wooden decks that look across the expanse of sea - so intense in hue that it looks artificial. The swanky hotel with its top flight hospitality offers an alternative way to savor paradise.

Those who flee boredom, rest assured - your days will be packed with things to do. And for those who know how rare it is to find a place that is truly unique, you will undoubtedly make LUX* North Male on the islet of Olhahali your home in the tropics.

LUX* Bodrum Turkey

Revel in the favorite beachside retreat

Olive-green hills, craggy coves, the scent of pines, white-washed stucco homes, the salty breeze of the Aegean, the cerulean shores... The gorgeous scenery is that of Bodrum, an ancient fishing village (one of the original wonders of the world was here) on Turkey’s southwestern coast, christened The St.-Tropez of Turkey. Istanbulites and jet-setters, in their never-ending search for sun-soaked hideaways, are drawn to the Riviera. LUX* Bodrum stands tall on its own peninsula, overlooking the sea that stretches out in all directions. Designed with vistas in mind, the sleek contemporary edifice has floor-to-ceiling glass panes that let the natural light flood in. The tiered structure descends into the blue Aegean waters that lap a crescent beach -a rarity on this jagged coast. Bikini-clad sunseekers lay on canopy beds; others take frequent dips in the warm waters. Music from Beach Rouge pulses in the background; steaming hot Turkish coffee signed Cafe LUX* is served after a late lunch of tempting dishes. LUX* Bodrum glistens: it is a magnetic escape you will return to time and time again.

LUX* Al Zorah Ajman - UAE

Enter the gateway to the immeasurable riches of the Arabian peninsula...

Ajman, the smallest of the seven emirates, is home to wetlands and a vast mangrove forest populated by fifty-eight species of birds including egrets, herons and ashen-pink flamingos. Ajman is also home to Al Zorah, a mixed-use development that pays meticulous attention to the wild surroundings.

LUX* Al Zorah, a five-star retreat, nestled within the estate, caters to those seeking a refuge from the pace and magnitude of neighbouring Dubai. The hotel’s architecture combines Arabian traditions with a contemporary flair.

Your summer routine may consist of birdwatching, strolls along the marina at dusk, canoeing in the mangroves, dining out in opulent restaurants, surfing, lazing on the gorgeous beach, ambling through the souks or playing a round of golf on the prestigious Nicklaus-designed 18-hole championship course.

This is the paradise that Al Zorah promises, and it delivers.

LUX* Grand Gaube Mauritius

When a traditional shing village is the setting for a hip, happening hotel...

Grand Gaube is a place of romance, enchanting landmarks, traditional fishing boats, and in-the-know eateries. LUX* Grand Gaube, opening this December, is tucked besides a centennial banyan tree that looms over two tranquil coves. The design-centric resort gleams in the Mauritian sun. Kelly Hoppen has revamped the hotel, turning it into a vintage-inspired beachside haunt. Pops of colour punctuate the airy, bright interiors packed with upscale comforts.

The magic of LUX* operates: dreamy destination, flawless service, a plethora of things to do, co ee beans roasted in-house, Beach Rouge, and the hottest tables of the island. Perusing the menu is like taking a trip to a faraway place - Peruvian, Argentine and Turkish cuisines rub shoulders with local Creole fare. The result is downright magni cent. Your senses are further stimulated by the blue hues of two swimming pools, the calm lagoon and the tropical gardens that surround the hotel.

LUX* Grand Gaube o ers a double-edged travelling experience - whether you are more of the sunbed type or a zealous adventurer, this resort does not disappoint.

LUX* PHU QUOC Vietnam

Where any turn on a road can lead to an encounter with tradition...

Phu Quoc - Pearl Island - provides respite from bustling Vietnam. The island oats in the warm waters of the Gulf of Thailand, some 30 miles off the west coast of Vietnam.

Once a sleepy outpost of fishing villages, it has emerged as a luxurious getaway. LUX* is set to unveil its overwater resort in 2019, on the island’s north coast, where the forested mountains slope down to sugar sand beaches, and where the ocean is myriad shades of green.

Perched on stilts above the Kiên Giang Biosphere Conservation Area, LUX* Phu Quoc is a gateway to immeasurable riches - night markets abuzz with local chatter, intricately carved pagodas, red and blue traditional fishing boats, encounters with tradition, and the fifteen islets that make up the mythically beautiful An Thoi archipelago.

Throughout 2017, LUX* Resorts & Hotels consistently pursued its strategic plan, strengthening the foundation for growth in sustainable earnings, while at the same time contributing to the economy, society and environment within Mauritius as well as all the countries where LUX* operates. Amidst yearlong challenges in many of our key markets, we have delivered yet another year of strong financial performance. Despite the closure of LUX* South Ari Atoll and LUX* Grand Gaube for two months due to renovation, reported revenue and EBITDA were Rs 5.4bn and Rs 1.27bn respectively, a growth of 5% and 13% on last year's turnover and EBITDA. The success story of LUX* Resorts & Hotels continues to be indubitably linked to the initiatives of incredibly innovative people, undoubtedly the bedrock of our success to date. I would like to seize this opportunity to thank each and every one of our team members for their unfailing commitment to continuously live up to the LUX* Vision and Purpose: Making Each Moment Matter & Helping People Celebrate Life.

Tourist arrivals to Mauritius for the financial year ended 30th June 2017 increased by 9% to reach 1,314,622. Arrivals from Europe, our main market, increased by 12% on last year to reach 714,483. Our three main markets in Europe, namely France, UK and Germany, improved by 3%, 10% and 25% respectively. Arrivals from Asia increased by 7% on last year to 211,620 mainly due to the increase in arrivals from India which grew by 14%. Arrivals from China went down by 9% on last year to 78,862. The number of tourist arrivals in Maldives for the financial year ended 30th June 2017 amounted to 1,324,754, a growth of 6% on the corresponding period last year. The Chinese market, which remains the number one source market for the Maldives with 23% of the total number of arrivals, has however decreased by 9% to a total of 308,057.

With regard to Reunion Island, tourist arrivals to the destination increased by 16% on last year to 486,453.

I am pleased to report that three out of four metrics that we use to track performance; namely Occupancy, ADR (Average Daily Rate) Rev PAR (Room Revenue per Available Room) and TrevPar (Total Revenue per Available room) have improved during the year. The only metric that was slightly down on last year, due to the closure of the two properties mentioned above, was Occupancy. In fact, the Group occupancy for the year ended 30th June 2017 went down by 1% point to 80% which is still very high. The ADR (Average Daily Rate) improved by 5% from Rs 7,813 to Rs 8,191 whilst the Group Rev PAR (Room Revenue per Available Room) increased by 4% from Rs 6,335 to Rs 6,580.

Despite the challenges in some markets and unfavourable exchange rates (notably of sterling following the Brexit vote) and the closure of LUX* Grand Gaube for the months of May and June 2017, our hotels in Mauritius delivered good results, posting a record occupancy rate of 85%, up by one percentage point on the previous year, and ADR improved by 6% to Rs 7,316. The increase in occupancy and ADR resulted in an increase of 7% in RevPAR. The turnover of our Mauritius hotels improved by 6% to Rs 3.6 billion whilst operating profit excluding the profit on sale of Tamassa hotel reached Rs 678 million, representing a growth of 4%. The operating margin has been maintained at 19%.

The results of LUX* South Ari Atoll in Maldives were impacted by the closure for two months due to renovation. In addition, the destination experienced increased competition as a result of new hotel openings. Occupancy during the period the hotel was fully operational was 59%, down by eleven percentage points on the previous year and ADR improved by 9% resulting in a drop in RevPAR by 8%. Inevitably, turnover and operating profit both declined, the latter further impacted by a closure cost of Rs 132m.

Our hotel in Reunion Island, LUX* Saint Gilles performed well with an occupancy rate of 78%, up by five percentage points on the previous financial year. ADR increased by 1% resulting in an increase in RevPAR of 10%. Turnover increased by 13% to Rs 655million and the operating profit for the year was Rs 14m compared to a loss of Rs 4m last year.

During the year, an amount of Rs 1.1 bn was capitalised representing the renovation cost of the second phase of LUX* South Ari Atoll and Construction in progress for LUX* Grand Gaube. However, the carrying value of Property, Plant and Equipment was written down by an amount of Rs 476m following the revaluation exercise carried out at end of year as mentioned in the Chairman report. The depreciation charge for the year has inceased by 15m to Rs 442m. The Group also disposed during the year of Tamassa hotel which was classified as 'assets held for sale' last year.

During the year, the Group generated cash flow from operations for an amount of Rs 1.2bn in excess of 12% on last year. Interest paid by the Group for the year under review amounted to Rs 241m, an increase of Rs 26m compared to last year due to the loans contracted for the renovation of LUX* South Ari Atoll. Loan repayment during the year amounted to Rs 999m which includes the repayment of the loan of Tamassa following the sale of the property. The net increase in cash and cash equivalents amounted to Rs 220m compared to a decrease of Rs 31m last year.

The ratio of net debt to EBITDA which was 7, five years ago, is today at 3. This ratio is very healthy and is among the lowest in the industry.

The strength of our sales, distribution and cutting-edge marketing continues to yield strong results in driving demand and enhancing our brand reputation as an international luxury resort operator of choice.

In order to capture visitor interest and convert it into stays, significant investment has been made in enhancing website content, which now includes 360-degree videos, images and drone videos. To complement this, throughout this year, our guests were invited to try something new. A unique calendar of expert-led workshops has been curated to inspire curious minds-creative artists and leading specialists will be sharing their secrets, all designed to inspire fresh ideas and approaches to life.

We have strengthened our central reservation call services and introduced a dynamic personal online chat service on our website.

Our online booking engine now allows our guests the choice to book their flights, hotel room and other services at the touch of a button from anywhere in the world.

Smile, and the world smiles at you - this is our new feel-good advertising campaign launched this year, which rethinks and defines luxury around the themes of joy, happiness and time devoted to cherished holidays.

The theme of the campaign 'Smile All The Stay', reinforces our goal for guests to enjoy genuine joie de vivre through the simple acts of generosity and interaction. It all starts with reconnecting to the moments that mean the most to our guests.

The six advertisements represent the fun, dynamic and unexpected atmosphere and lifestyle of LUX* Resorts & Hotels. The bold, stylish, global campaign running in publications such as Conde Nast Traveller, Tatler, Harper's Bazaar, Monocle, FT How to Spend It, GQ and Vanity Fair, includes images that convey the simple, fun, light-hearted holiday moments that characterise a LUX* holiday. Complemented by social media initiatives on Facebook, Twitter, WeChat, Weibo and Instagram, the campaign reinforces the brand's global positioning and mission of 'helping people celebrate life' and 'making each moment matter'.

Innovation and banishing thoughtless patterns are at the heart of LUX* Resorts & Hotels' initiatives to create a different kind of holiday experience. Our ideology - a Lighter, Brighter way of celebrating life - is reflected in our new and exciting Reasons to Go LUX*, which will be launched with the reopening of the new LUX* Grand Gaube, and strengthens our reputation as a fresh and inspiring hospitality brand.

We are launching our LUX* Experience App on the occasion of the launch of LUX* Grand Gaube. This App will enable our guests to customize their stay prior to arrival as well as enroll into our innovative loyalty program. This will facilitate an ongoing relationship with our guests encouraging future booking.

The LUX* brand comes to life each day due to the genuine passion and commitment of our Team Members across all our destinations. Our foundational elements of Vision, Purpose and Values (VPV) are our constant source of inspiration, coupled with the LUX* Shining Personality Standards which make every LUX* Team Member truly unique.

SUSTAINABLE DEVELOPMENT

We also take pride in being a socially and environmentally responsible brand. LUX* now has an established reputation as a business with a firm commitment to sustainability. We strongly believe in sensible resource utilisation and act to the best of our abilities to fully respect and protect the environment.

We cannot and shall not run our business whilst putting in jeopardy the ecosystem and the environment of communities we operate in. This is why we have put in place numerous green and social initiatives, to which all our collaborators adhere. Our targets include reduction in waste, energy, water consumptions & carbon emissions and corporate responsibility. Our strategy involves Gender equality and equal opportunity.

Another feature of LUX* is our emphasis on good corporate governance. We not only value the importance of corporate responsibility, but we fully adopt the principles of ethics and proper risk management. We believe in Integrated Thinking, Integrated Reporting, Integrated Action and Integrated Communication. LUX* is part of GRI Gold Community, empowering reporting and decision making for a better future and remains the first hotel group on the SEM Sustainability Index.

Our partnership with Ron Kaufman's Up! Your Service College continues to bring world-class actionable service education to all our Team Members. The focus on our personal energy which began in 2016 continues to be a highlight of our service culture education and this year we enhanced this initiative by also including more stakeholders in some of our workshops.

We continue to upskill our Team Members by providing quality hospitality education through our long-term partnership with Lobster Ink, the leading online training company for the hospitality industry, with content covering all major aspects of hospitality.

The LUX* Shining Hospitality Standards were revised and upgraded this year and our operations will continue to work on fine-tuning our internal service standards to ensure we continue to deliver unique experiences to our Guests through our dedicated and passionate team members.

Our Talent Management strategies allow us to manage talent as a critical resource to achieve superior business results. We remain committed to the development and growth of our Team Members in line with the expansion of LUX* in newer geographic regions and for this, we have earmarked specific resources to ensure we are able to provide for the varied learning and development requirements of our Teams which in turn will improve business value.

Our target for 2016-17 was 145 average man-hour training per Team Member and I am delighted to report that we have once again exceeded our target as we closed the financial year at an average of 161 training hours per Team Member, therefore showing an increase of 14% over last year's achievement. Pre-opening training completed for LUX* South Ari Atoll has been a major contributor along with on-the-job training delivered by our internal team of Certified Departmental Trainers.

Creativity is a key driver of the LUX* Brand and to keep this spirit alive, our teams actively participate in the yearly edition of the LUX* Innovation Challenge which was first introduced in 2013. The challenge has a theme each year and our teams are invited to implement their innovative ideas which are then presented to a distinguished panel of jury members and winning ideas are awarded and implemented. The innovation theme for 2013 was dedicated to "Increasing Loyalty of Guests" and 2014 to "Increasing Loyalty of Team Members". The year 2015-16 saw our teams coming together to compete under the category "Innovate to Increase Revenues." The 4th category for 2016-2017, currently being contested is "Innovate to Increase Productivity." We look forward to sharing the results of the finals which will be held in October 2017. Each idea received will help to achieve 3 of the following objectives which have been set as criteria:

1. Improved quality of service within existing resources
2. Improved timeliness of service
3. Cost Effectiveness or Cost avoidance
4. Elimination of health and safety hazards

We are very proud of the large number of industry awards our brand won during the last financial year and we focus on ensuring that they stay relevant to the changing needs of our guests and reflect the work we have been doing to build awareness, recognition and guest satisfaction.

Recent indicators show that our tourism sector got off to a good start in calendar year 2017. The first six months registered a robust growth of 6.7% in arrivals. This has been driven by strong growths from Switzerland (+18.9%), Germany (+13.6%), Italy (+13.2%), UK (+6.8%) India (+14.6%) and Reunion (+8.1%). Of concern, is the negative performance recorded for China (-1.3%) and France (-1.2%) over the same time period. Based on the latest available data on tourist arrivals, statistics Mauritius is forecasting 1.36m visitors for the calendar year 2017, an increase of 6.6% on the previous year. This augurs very well for our hotels in Mauritius.

With its pristine natural islands, crystal-clear water and white sandy beaches, the Maldives is today one of the most expensive and aspirational leisure destinations worldwide. Tourism is the single largest contributor to the economy, with the total contribution representing over 75% of total GDP. Over the past few years, the international arrival growth to the Maldives has been driven by Chinese. However, over the last two years, the number of Chinese tourists declined by over 10%, primarily attributable to the competition from alternative destinations. With additional hotel openings, the Maldives will be a challenging market. However, over time, the Maldives tourism has proven itself to be resilient and has always rebounded quickly. With its strong positive reputation as a tourist destination, we believe the Maldives will retain its appeal in the long-term.

With regard to Reunion Island, the 16% increase is very encouraging and we believe that this trend will continue during this financial year based on the initiatives taken by all the key stakeholders.

To conclude, on behalf of the Executive Management team, I would like to express our gratitude to all who contributed to our success in the 2016/2017 financial year, including our customers, our guests, shareholders, business partners, suppliers and the communities in which we operate. To our 3,225 team members across all the countries where we are present, again a profound thank you for your ongoing dedication, passion and support without which we could not have achieved these results.

I seize this opportunity to thank my fellow Board members, and in particular the Chairman Arnaud Lagesse, for their wise counsel and unfailing support.

As it says on the cover of this report, we are all dedicated to deliver on our promise of helping people celebrate life !

Sincerely Always

Paul Jones
Chief Executive Officer
26^th September 2017

Dear Stakeholders,

For the fourth consecutive year, we have conceived an Integrated Annual Report that communicates a holistic view of how we derive and create value. The financial and non-financial performances reported have undergone thorough appraisal by independent auditors. This report adheres to the GRI (Global Reporting Initiative) and IIRC (International Integrated Reporting Council) guidelines. Our commitment to the UN SDGs (Sustainable Development Goals), the UN Global Compact, the Montreal Protocol, the Defra (the UK Department for Environment, Food & Rural Affairs) and the HCMI (Hotel Carbon Measurement Initiative) ensure we meet Sustainability and Good Governance standards. Responsible Business is the basis of our decision-making and contributes to advancing the communities and economies in which we are present.

I am though delighted to present the Integrated Annual Report of Lux Island Resorts Ltd for the financial year ended 30th June 2017.

OVERVIEW

The Group results for the financial year ended 30th June 2017 were influenced by the following:

• the sale and lease back of Tamassa hotel to Grit (previously Mara Delta), resulting in a gain of Rs 195m on disposal of property, plant and equipment
• the unfavorable exchange rates, notably the GBP following the Brexit vote
• the closure for renovation of LUX* South Ari Atoll in Maldives during the months of July and August 2016 and the closure of LUX* Grand Gaube for refurbishment as from May 2017. The total closure cost incurred on both renovations and accounted in the financial year under review amounted to Rs 165m.

Against the above background, the Group delivered commendable results for the year ended 30th June 2017 with Earnings per Share ("EPS") growing by 23% from Rs 3.06 to Rs 3.75. This performance is the result of the dedication, passion and energy of all our team members, the strength of our brand as well as our relentless focus on delivering on our strategy. The Board would like to express its heartfelt gratitude to those 3,225 team members for their dedication in ensuring the continued growth and success of LUX* Group.

GROUP RESULTS

Total revenue for the year under review reached Rs 5.4 billion, up by 5% on 2016 and EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) amounted to Rs 1.3 billion, an improvement of 13% on last year. Depreciation and Amortization increased by Rs 15m or 3.4% on the prior year mainly due to the renovation of LUX* South Ari Atoll, whilst finance costs increased by Rs 27m due to interest on the loan contracted to finance the renovation works. The interest cover for the year is still very healthy at 5.2 times. Attributable profit for the year improved by 23% to Rs 515m. In line with its policy to revalue its properties every three years, the Group revalued all its properties at 30th June 2017. The valuation exercise was carried out by an independent Professional Valuer who used as basis the Open Market Value by reference to recent market transactions at arm's length as well as the cash flow generated by each property. The revaluation exercise resulted in a net decrease in the value of the properties of Rs 476m mainly due to the renovation of LUX* South Ari Atoll and LUX* Grand Gaube whereby part of the properties were demolished. Since the decrease in value represents the reversal of revaluation surplus of the same assets recognised in prior years, the decrease has been accounted as a movement in Other Comprehensive Income ("OCI"). Other movements in OCI are explained by the translation of foreign subsidiaries and foreign currency loans.

Total net interest bearing debt as at 30th June 2017 amounted to Rs 3.8 billion compared to Rs 4.5 billion last year, a net decrease of Rs 700 million. The gearing of the Group at 30th June 2017 stood at 40% compared to 43% a year ago and continues to be well below the industry average.

The Net Asset Value per share as at 30th June 2017 decreased by Rs 1.64 to Rs 42.24 following the revaluation carried out at end of year. This value increases to Rs 53.97 if the market value of leasehold land of the Group is taken into consideration.

We remain committed to delivering long-term shareholder value and at the same time providing a sustainable return to our shareholders in terms of dividends. For the financial year ended 30th June 2017, the Company paid a dividend of Rs 1.25 per share amounting to Rs 171m, representing a growth of 9% on previous year. I am confident that, subject to cash flow, providing there is no deterioration in the environment and the positive trend continues, the Company should be able to maintain and even increase the dividend payout in the coming years.

Lux* Strategy - Vision 2020

Since we launched the LUX* brand in December 2011, the brand has grown consistently both in strength and attractiveness, offering distinctive and imaginative hospitality experiences that have become over the years the very hallmark of LUX*. We aim to continue to inspire, surprise and delight both our guests and owners, whilst ensuring alignment of our key hospitality metrics with best international benchmarks.

Over the last few years, we have built our Strategy around 2 poles:

1. The reinforcement of the Indian Ocean (the Core); consolidating the foundation for success in our legacy base, through uplifting our owned assets, whilst continuing to strengthen our competitive advantage, and securing third-party hotel management contracts
2. The growth around and beyond the Core, by planting the seeds for global expansion

As we embark on our VISION 2020 Strategic Plan, we will continue to invest in the uplift of our properties, whilst pursuing our geographical expansion, extending our brand presence across the Indian Ocean, China, South East Asia, Europe, Middle East and Africa. Our ambition within the next 3 years is to increase substantially both the number of hotels managed, as well as the key regions where LUX* will be present.

To date, our pipeline of third-party Hotel Management Contracts includes 6 in China, 1 in South East Asia, 1 in the Indian Ocean, 1 in the Middle East, and 1 in Europe/ Eastern Mediterranean.

In order to support our growth ambition, we are consolidating our current organisational structure, to maximise effectiveness and respond in a timely way to all Business Development opportunities. We are confident that this will leverage our efforts towards achieving our VISION 2020 Strategy.

OUTLOOK

Although the Global Economic Environment remains uncertain, it is encouraging to note that tourist arrivals are increasing in the destinations where we are operating.

The renovation of LUX* Grand Gaube is progressing well with an expected opening on the 1st December 2017. This spectacular new resort will contribute positively to the results of the group.

Business currently held for the first quarter ending September 2017 is showing good growth on last year across all properties. With the Maldives fully open for business this year compared to the closure last year and notwithstanding the closure of LUX* Grand Gaube this year, we anticipate good growth in EBITDA.

APPRECIATION

On behalf of the Board of Directors, I would like to take the opportunity to thank our stakeholders, including shareholders, customers, fellow board members and business partners for their continued support and confidence in LUX* Resorts & Hotels. Last but not least, on behalf of the Board of Directors, I would like to express my sincerest appreciation to Paul Jones our Chief Executive Officer, Desire Elliah our Chief Financial Officer, Julian Hagger our Chief Sales & Marketing Officer, Dominik Ruhl our Chief Operating Officer, Marie-Laure Ah-You our Chief Strategy Officer, Nicolas Autrey our Chief Human Resources Officer, the Management and all team members, who are the driving force behind our success.

Arnaud Lagesse
Chairman
26^th September 2017